liminfoCapital Gains Tax Calculator
Free web tool: Capital Gains Tax Calculator
Broker fees, legal fees, etc.
Capital Gains
195,000,000 KRW
Total Tax
50,380,000 KRW
Effective rate: 25.8%
Tax Calculation Details
About Capital Gains Tax Calculator
The Korean Capital Gains Tax Calculator (양도소득세 계산기) computes the estimated tax liability when selling real estate in South Korea. Enter the acquisition cost, sale price, necessary expenses (broker fees, legal fees), holding period in years, and number of homes owned. The calculator instantly shows capital gains, applicable deductions, taxable income, base tax, local income tax, and the grand total you would need to pay.
South Korea's capital gains tax system uses progressive rates ranging from 6% to 45%, applied to the taxable base after two key deductions: the long-term holding special deduction (장기보유특별공제) of up to 30% for properties held 15 or more years, and the standard basic deduction of 2.5 million KRW. Multi-home owners in designated regulated areas (조정대상지역) face surcharges of +20 percentage points for two homes and +30 percentage points for three or more homes. Local income tax (지방소득세) of 10% is added on top of the capital gains tax.
All calculations are performed entirely in your browser using standard JavaScript arithmetic, applying the official Korean tax brackets and deduction rules as codified in the Income Tax Act (소득세법). The tool shows a full itemized breakdown — capital gains, long-term deduction amount and rate, basic deduction, taxable income, applied progressive rate, surcharge if any, capital gains tax, local tax, and the overall effective tax rate. Note that special exemptions such as the 1-household 1-home non-taxable exemption (1세대 1주택 비과세) are not reflected in this calculator.
Key Features
- Calculates capital gains by subtracting acquisition cost and expenses from the sale price
- Applies long-term holding special deduction: 6% at 3 years, +2% per year, up to 30% at 15+ years
- Automatically deducts the standard 2.5 million KRW basic deduction from the taxable base
- Applies progressive tax rates from 6% (under 14M KRW) to 45% (over 1B KRW)
- Adds multi-home surcharges: +20%p for 2 homes, +30%p for 3+ homes in regulated areas
- Computes 10% local income tax (지방소득세) on top of capital gains tax
- Shows full itemized breakdown including effective tax rate on capital gains
- 100% browser-side calculation — no data uploaded, completely private and free
Frequently Asked Questions
What is Korean capital gains tax (양도소득세)?
Korean capital gains tax, or 양도소득세, is a national tax levied on the profit (capital gain) realized when selling real estate or other assets. The taxable gain equals the sale price minus the acquisition cost and necessary expenses such as broker and legal fees. Progressive rates from 6% to 45% apply, with additional surcharges for multi-home owners in regulated areas.
How is the long-term holding special deduction calculated?
For properties held 3 or more years: the deduction starts at 6% for exactly 3 years and increases by 2 percentage points for each additional year, reaching a maximum of 30% at 15 or more years of holding. The deduction rate is applied to the capital gain before the basic deduction. This deduction does not apply when a multi-home surcharge is also applicable.
What are the multi-home surcharges in regulated areas?
In designated regulated areas (조정대상지역): owners of exactly 2 homes pay an additional 20 percentage points on top of the standard progressive rate, and owners of 3 or more homes pay an additional 30 percentage points. When a surcharge applies, the long-term holding special deduction is not available.
What is the standard basic deduction?
A flat basic deduction of 2.5 million KRW (250만원) is subtracted from the capital gain (after the long-term deduction, if any) to arrive at the taxable income. This deduction applies once per tax year per asset type.
Is local income tax included in the calculation?
Yes. The calculator adds local income tax (지방소득세) equal to 10% of the capital gains tax to produce the grand total. Local income tax is separately assessed by local governments but is always payable alongside the national capital gains tax.
What is the 1-household 1-home exemption?
Under certain conditions, a household that owns only one home and has held it for at least 2 years (and resided in it for 2 years if located in a regulated area) may qualify for a complete capital gains tax exemption on sale proceeds up to 1.2 billion KRW. This calculator does not model this exemption, as it is only for taxable transactions.
What expenses count as necessary expenses?
Necessary expenses (필요경비) that reduce the taxable capital gain include real estate brokerage commissions, notary and legal registration fees, acquisition tax paid at the time of purchase, and capital improvement costs. Routine maintenance costs such as painting or minor repairs generally do not qualify.
Is this calculator official or just an estimate?
This calculator provides an estimate for reference purposes only, based on standard Korean capital gains tax rules. It does not account for temporary 2-home situations, inheritance or gift scenarios, or other special tax treatments. For precise tax liability, consult a licensed Korean tax accountant (세무사).